President Hipolito Mejia's overseas trip extended to the Middle East yesterday. The Israeli agriculture minister met President Mejia and his entourage at Ben Gurion Airport on Wednesday afternoon. The two-day schedule included a visit to an agricultural fair yesterday, and meetings today in Jerusalem with Israeli President Moshe Katsav, Prime Minister Ariel Sharon and former PM Shimon Peres. On the presidential agenda are also visits to the Holocaust Museum in Jerusalem and lunch with Israeli business leaders. It is already being reported that Israel will contribute funds for agricultural, forestry and social development projects in the border regions of the DR, with the aim of preventing the mass migration of impoverished rural dwellers to the cities. The first phase of this program, which includes organizing co-operatives, providing irrigation, promoting agricultural diversification and goat-rearing, is estimated at US$7 million. On Friday, the President will make a brief visit to Jordan, where he will be received by King Abdullah. Mejia is due to return to the Dominican Republic on 24 September with stopovers on the way home in the Spanish province of Navarra and Holland.
Diario Libre comments that President Hipolito Mejia should never have accepted the invitation to visit Spain from the Spanish King and Queen and head of government Jose Maria Aznar, given the conflict with the Spanish power company, Union Fenosa. The Spanish ambassador to the DR, the Spanish monarchs and Aznar had been asked by the company to intercede on their behalf. Diario Libre's page-two column says the Spaniards speared the Dominican President with their comments in Spain as if he were a bull in a bullfight, leaving him to bleed. The topic: judicial security, that is, adherence to the law. Anibal Castro, writing for Diario Libre, says that the President should have been forewarned and comments the newspaper was right it predicted the visit would be "electrifying." For comments, write to acastro@diariolibre.com
Following intense speculation, Venezuelan President Hugo Chavez has confirmed that the recent suspension of petroleum exports to the Dominican Republic was brought about by accusations that conspirators are using the DR as a base for the planning of a coup against him. Chavez told foreign reporters that exports would be suspended "until the matter was cleared up." Last month, the Venezuelan President alleged that former President Carlos Andres Perez, who lives in the Dominican Republic, was engaged in a plot against his government from Dominican soil and that Dominican officials were implicated in the scheme as well. The Dominican government denied the charges and refrained from taking any measures against Perez, who was in power at the time of Chavez' failed military coup in February 1992. The Dominican Republic has traditionally maintained a healthy relationship with Venezuela and purchases its oil on preferential terms as set out in the San Jose agreement and the Caracas energy agreement, along with several other nations in Latin America and the Caribbean. The reason for Venezuela's decision to suspend petroleum sales to the DR was confirmed in Santo Domingo yesterday by Venezuelan Ambassador Francisco Belisario Landis, who referred to the "extensive smear campaign carried out by ex-President Carlos Andres Perez from Dominican territory." The diplomat called for a quick resolution of the dispute through dialogue between the two governments. Some reports indicate that Perez has left the Dominican Republic for an indefinite period.
The papers are reporting on the prolonged power cuts in Santo Domingo in recent days, some of which lasted as long as 24 hours in certain areas. These outages are a direct result of the current financial crisis, as Cogentrix withdrew its service because it has not been paid for July and August, amounting to an US$18-million debt. In the Cibao region in the center of the country, the situation is reported to be even more severe. As ever, the power cuts force individuals and businesses to use their emergency diesel-powered back-up generators, which are costly and cause pollution.
El Caribe reports that the power generation companies are expressing their concerns that the Union Fenosa transfer contract does not specify the amount owed to them by the two beleaguered power distribution companies, EdeNorte and EdeSur, leading to fears that they may never receive their due. The newspaper quotes various estimates of money owed by the "Edes" to the assorted power generation companies, but a total figure has been impossible to calculate. Power generating companies like Cogentrix are demanding that the state electricity company (CDEEE) honor these debts. EdeSur and EdeNorte owe millions of dollars to international lenders, such as the Inter-American Development Bank, the World Bank, Citibank and local commercial banks, as well as the power generation companies. El Caribe says that when Finance Minister Rafael Calderon was asked about the debt with the private generators, he explained that it would be paid with the funds from the accounts receivable. He did not, however, offer any details on why the amounts owed are not identified in the buyback agreement, as are the debts of the multilateral organizations and commercial banks. In the "Que se dice" column of Hoy, the newspaper points out that Calderon, one of the leading negotiators, admitted that not until 1 November, when the audits are in, would the government know what it is picking up for the contracted price. The set signing date for the contract is 30 September. Opinion in the power generation sector remains divided over the wisdom of the government's decision to transfer the distribution companies back to state control. Press reports slant against the agreed-upon terms.
Hoy newspaper's "Coctelera" column suggests that a mini-court of the Supreme Court of Justice should review the contracts signed by the government that create obligations to the state. The writer questions the impunity of those negotiating the contentious contracts, often with foreign companies that later submit to major disputes revealing irregularities with the terms contracted. The contracts usually guarantee hefty commissions or under-the-table benefits for those in government that lobby for, authorize or actually sign the contracts at a high cost to taxpayers. The writer says the problem will continue because those responsible for the contracts enjoy an impunity that frees them from all penalties. While the infamous contracts and their unfair clauses can be appealed in international arbitration courts, the country earns itself a bad name in the process. These appeals habitually take place following a change of government. The author suggests that the mini-court be created to guarantee judicial security to the parties involved, that its members not be politically-related, that independent foreign advisors be included, and that the revision occur prior to the signing of the contract. He mentions this could be a sort of utopia, as those who are hand-picked for contract work will not appreciate the door being closed on covert handouts.
Despite the government party being majority in the Senate, the Senate Finance Committee has come out against the levy of a 5% tax on exports being implemented by the government since 1 August. The Senate says the government needs to consider alternatives to raise RD$2.8 billion through taxation, as report today's newspapers. The controversial supposedly transitory tax, introduced by presidential decree (727-03) on 6 August, has met with widespread opposition from the usually complying business community and has led to legal action by business and export leaders to have the decree pronounced illegal by the Supreme Court. The hotel industry has recommended that its members boycott the tax. Free-zone exporters, however, were not being asked to pay and the government recently exempted exports to Haiti from the surcharge. An alternative proposal will be made public once President Hipolito Mejia and Technical Secretary to the Presidential Office Carlos Despradel return from their overseas trip. Senator Tonty Rutinel Dominguez of the ruling PRD party said that only RD$60 million has been raised so far by the tax, and suggests that exporters who have paid the tax to date should be reimbursed. Marisol Vicens of the Association of Young Entrepreneurs is quoted in El Caribe today saying, "This improvisation on behalf of the authorities generates uncertainty and does not bring about the confidence that the economy needs."
Listin Diario quotes the economist Frederic Emam-Zade, who expressed his concern that the government has not carried out assessment studies on the possible impact of a Free Trade Agreement with the United States on local production. Hugo Rivera Fernandez, who heads the newly-formed Trade and Investment Committee on the FTA with the US, has said that the information is currently being compiled. Emam-Zade has praised the political makeup of the government team, but believes that it must still carry out impact evaluations, for which, says the private consultant, the expertise exists.
The maneuverings regarding the thorny question of who will be the next PRD Presidential candidate continue. Rafael Subervi Bonilla, one of the seven pre-candidates besides Mejia, is said to be engaged in negotiations with the PPH (Proyecto Presidencial Hipolito - internal PRD campaign promoting the President's re-election). Speaking on the CDN news channel's "120 Minutos" program, Subervi said he was seeking a solution to the bitter dispute that is dividing the ruling party. One of the compromises he suggested was that a PPH member join him as his running mate. Meanwhile, Vice-President Milagros Ortiz Bosch is urging her anti-re-election colleagues to unite under the banner of a single candidacy. Pre-candidate Enmanuel Esquea Guerrero has said that the threat of a PPH boycott of the planned plebiscite aimed at determining PRD members' views on re-election would be illegal. PPH activist Vicente Sanchez Baret has described the proposed plebiscite as a "useless exercise" and called for the party to select its candidate at a convention. In a more serious clash, a PRD activist was murdered in the northern city of Moca in an apparent result of a political argument. Hoy newspaper is specific in its allegation that the murderer was a PPH activist and that the victim was a supporter of Ramon Alburquerque, who is part of the group that opposes Hipolito Mejia's re-election ambitions.
Breaking news on CDN says that Jacinto Peynado, recovering from surgery in Miami, has stated he will never support Estrella's candidacy. Peynado also spoke up against Rafael Bello Andino "and his gang" remaining at the helm of the Social Christian Reformist Party (PRSC). He said he would return at the end of the month.
Emilio Lapayese, the acerbic columnist for Hoy newspaper, wrote yesterday about the political parties, noting that it was the last day to officially register a political party for the 2004 elections. Don Emilio pointed out that the Central Electoral Board (JCE) requires political parties to register their "principles, aims, and tendencies", according to their "particular ideology." He said, however, that these days no one can distinguish the principles, aims and tendencies that tell one party from another. The consensus is, according to Lapayese, that all parties are pragmatic seekers of power, even if they don't know how to use it. Some of the parties were born in the heat of ideological wars, but for a long time now the ideologies have been forgotten. They have become costly electoral machines and their leaderships, like those of the Mafia, are hereditary. The sons and closest kin of former leaders tend to act like gangsters without ideals, inciting Lapayese to call them "looters."
The Civil and Commercial Chamber of the Court of Appeals in Santo Domingo has overturned a decision pronounced in May by Judge Samuel Arias Arzeno, which ordered the Attorney General's office to return the confiscated Listin Diario newspaper to its former owner, Ramon Baez Romano. Baez Romano is the father of Baninter's president, Ramon Baez Figueroa, who is currently in custody for his role in the multi-billion Baninter fraud. The planned return of the newspaper to Baez Romano had been held up by the authorities since the decision as they wrangled over legal technicalities.
Cesar Sanchez, the head of the state utility, CDEEE, is happy as can be with the new lights around the Restoration Monument in Santiago de los Caballeros. The computer-programmed show, which entails 60 kinds of lights, is entertaining locals and tourists alike. Reportedly, RD$6 million was invested in the illuminated spectacle, whose electric bill will be paid for by the CDEEE - in other words, it will be "free".
The investigating committee set up by the armed forces to examine the tragic case of 16 Haitian nationals found dead at different points in the south-western border regions last month believes that "no criminal hands" were responsible for the deaths. It was originally suspected that the Haitians, believed to be illegal immigrants, had either been murdered or left to die in remote areas by unscrupulous people traffickers. Attorney General Victor Cespedes Martinez has revealed that at this stage of the investigation it appears more likely that the latter was the case, and that the 16 people, including two children, had died of starvation and exposure. One of the survivors is a witness to the fact that they were left to their fate, but El Caribe reports that some questions remain, such as why one of the bodies - that of a 19-year-old woman - was found unclothed. It is also believed that the corpse was set alight after it was initially discovered. Local residents of the remote area claim that the appearance of dead bodies in the region is a regular occurrence. There are two suspects in this latest case, both of whom are believed to be people traffickers, and for now have absconded from justice. The investigation has been delayed and complicated by the logistical difficulties of operating in the remote mountainous area, explained the Attorney General, who compared the plight of illegal Haitians to the Dominicans who suffer hardship and often perish on the flimsy barges to Puerto Rico. El Caribe's main editorial describes the case as a "shameful tragedy" and asks why a team of television and press journalists was able to access the area with relative ease, while no state institution has apparently been able to do so? The writer calls for a more coherent government policy on the issue, and for the activities of "los buscones" (people traffickers) to be halted once and for all.
The Dominican women's volleyball team advanced to the semifinals, which begin today at the Juan Pablo Duarte Olympic Center's Volleyball Pavilion. The DR has previously defeated Puerto Rico, Canada and Trinidad for the lead in Pool A. In Pool B, the US defeated Costa Rica and Cuba. The US will face Canada at 6pm. The DR matches Cuba at 8pm. This will be a face-off between the two teams that last met in August at the Pan American Games in Santo Domingo. Tonight they meet again in the very same arena, where the DR defeated Cuba for the gold medal. The US is the current favorite to repeat its performance as winner of the Norceca Championship, and the second place is purportedly up for grabs between the DR and Cuba. The US team is ranked No. 2 in the world and Cuba is a three-time defending Olympic gold medalist. The championship match will take place on Friday, 19 September. Teams winning first and second places in the North America / Central America / Caribbean Championships qualify to compete in the Japan World Cup. The top three teams at the World Cup automatically qualify for the 2004 Summer Olympic Games in Athens. The DR team is on a roll, however, after winning gold in the Santo Domingo Pan American Games. Tickets are RD$60. Parking within the JPD Olympic Center is not permitted. Consider taking a taxi to and from.
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